If potential buyers of good X expect the price of good X will soon fall, then the current
A) demand for good X will rise.
B) demand for good X will remain unchanged.
C) demand for good X will fall.
D) quantity demanded of good X will fall.
E) quantity demanded of good X will rise.
C
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In 1966, the Catholic Church eliminated the centuries-old requirement that members abstain from eating meat on Fridays. Catholics customarily ate fish on Friday. Given this, economics would predict thatÂ
A. the price of both meat and fish would rise. B. the price of fish would increase and the price of meat would fall. C. the price of fish would decrease and the price of meat would rise. D. the price of both meat and fish would fall.
Scott is a manager at a pool cleaning business. He has hired 10 workers to clean pools for him and is considering what type of payment scheme he should set up for his workers
He can pay each of his workers $10 per hour to clean pools, or he can pay his workers $20 for each pool a worker cleans. (It takes 2 hours, on average, for an employee to clean a pool thoroughly.) If Scott wants to maximize the number of pools his workers clean in one day, which payment scheme should he use? Explain.
What would be the effect of a decrease in the real interest rate and an increase in the expected inflation rate?
a. Both changes would decrease aggregate demand. b. Both changes would increase aggregate demand. c. Both changes would increase short-run aggregate supply. d. Both changes would increase long-run aggregate supply.
The difficulty in analyzing oligopolistic behavior arises from the
a. degree of government regulation of the market structure. b. interdependent nature of oligopolistic decisions. c. large number of firms in the industry. d. market power of consumers.